Cirrus Logic (NASDAQ:CRUS) vs. DAQO New Energy (NYSE:DQ) Financial Comparison

DAQO New Energy (NYSE:DQ) and Cirrus Logic (NASDAQ:CRUS) are both technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.

Earnings & Valuation

This table compares DAQO New Energy and Cirrus Logic”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DAQO New Energy	$665.41 million	1.11	-$170.51 million	($3.40)	-3.22
Cirrus Logic	$2.00 billion	3.00	$414.41 million	$7.92	15.18

Cirrus Logic has higher revenue and earnings than DAQO New Energy. DAQO New Energy is trading at a lower price-to-earnings ratio than Cirrus Logic, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

47.2% of DAQO New Energy shares are owned by institutional investors. Comparatively, 88.0% of Cirrus Logic shares are owned by institutional investors. 24.3% of DAQO New Energy shares are owned by company insiders. Comparatively, 1.2% of Cirrus Logic shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for DAQO New Energy and Cirrus Logic, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DAQO New Energy	3	1	1	0	1.60
Cirrus Logic	2	3	4	0	2.22

DAQO New Energy currently has a consensus target price of $13.73, suggesting a potential upside of 25.43%. Cirrus Logic has a consensus target price of $147.50, suggesting a potential upside of 22.72%. Given DAQO New Energy’s higher probable upside, research analysts clearly believe DAQO New Energy is more favorable than Cirrus Logic.

Profitability

This table compares DAQO New Energy and Cirrus Logic’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DAQO New Energy	-45.46%	-3.90%	-3.58%
Cirrus Logic	20.20%	19.77%	16.87%

Volatility and Risk

DAQO New Energy has a beta of 0.5, indicating that its stock price is 50% less volatile than the S&P 500. Comparatively, Cirrus Logic has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500.

Summary

Cirrus Logic beats DAQO New Energy on 12 of the 14 factors compared between the two stocks.

About DAQO New Energy

DAQO New Energy Corp. is a manufacturer of high-purity polysilicon, a key raw material used to produce solar wafers, cells and modules. Its products support the photovoltaic supply chain and the broader deployment of solar power. Founded in 2007, the company operates manufacturing facilities in China. Its customers include manufacturers of solar wafers and other photovoltaic products, primarily in China, as well as customers in international markets.

About Cirrus Logic

Cirrus Logic is a fabless semiconductor company that designs high-performance, low-power integrated circuits, with a focus on audio and mixed-signal technologies. Its products include audio converters and codecs, amplifiers, and other components used to capture, process, and reproduce sound. The company also develops mixed-signal products for applications such as haptics and power management. Its chips are designed for a range of markets, including smartphones, computers, consumer audio equipment, automotive systems, and industrial devices.